Spending Limits
Your spending limit depends on the selected spending mode.
Debit Mode
In Debit Mode, you can only spend existing USD funds in your Liquid Bank account.
Spending limit = available USD balance
USD+ Savings balances are excluded
No borrowing is possible in this mode
If your USD balance is $2,000, your maximum spend is $2,000.
Credit Mode
In Credit Mode, as you spend, you borrow USD, up to a defined borrowing limit.
Spending limit = Spending Cap
The Spending Cap is the maximum additional USD you can borrow
It is calculated from:
the USD value of your collateral, and
each asset’s Loan-to-Value (LTV) ratio
Spending reduces your remaining Spending Cap
Once your LTV limits are reached, further spending is blocked
If your remaining Spending Cap is $5,000, you can spend up to $5,000 in borrowed USD.
Important clarification (this is usually where users get confused)
Spending in Credit Mode creates debt
Debt cannot be repaid by selling collateral manually
Debt can only be repaid with USD in your Liquid Bank account
Collateral is sold automatically only if LTV thresholds are breached
Maximum monthly spending limit
Regardless of mode, there is a default maximum monthly spending limit of $100,000, which is not currently user-configurable.